Munchener Ruckversicherungs-Gesellschaft AG · XETR:MUV2
Munchener Ruckversicherungs-Gesellschaft — Munich Re — Investor Day (June 2009)
22 slides from Munchener Ruckversicherungs-Gesellschaft's investor day presentation, Jun 29, 2009
Slide 1: Analysts' Lunch Seminar on Life Reinsurance
Munich Re Group Analysts’ Lunch Seminar on Life Reinsurance Joachim Wenning London, 29 June 2009
Slide 2: Highlights of life reinsurance
Highlights of life reinsurance Significant contribution to profitable growth Global life reinsurance market is dominated by two players in a head-to-head situation – Munich Re life reinsurance represents more than a quarter of the reinsurance segment Munich Re Group – Analysts‟ Lunch Seminar on Life
Slide 3: Development of gross premiums written
Development of gross premiums written Munich Re to fully capitalise on growth of life reinsurance market Gross premiums written life reinsurance 1 Highlights €bn Global market CAGR 4.9% Increase in market share mainly Munich Re based on organic growth Munich Re Group – Analysts‟ Lunch Seminar on Lif
Slide 4: Competitive position
Competitive position Munich Re well positioned to capture full market potential Global market share1 Highlights % Swiss Re 22 Traditional life reinsurance business to Munich Re 22 provide earnings stability going forward RGA 12 Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June
Slide 5: Integrated business model
Integrated business model Life reinsurance essential pillar of increasing importance Share of life business within reinsurance segment1 Munich Re Group – premium breakdown2 % €bn Reinsurance 100 Reinsurance P-C 100 100 Health Life Life 1.8 (5%) 5.3 (14%) Munich Re Group – Analysts‟ Lunch Seminar on
Slide 6: Distribution of products
Distribution of products Predominantly mortality risk Share of net premium 2008 (2007) Highlights Longevity Mortality covers dominate top and bottom line 4% (4%) (as well as risk capital) Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 Mortality portfolio successfully su
Slide 7: Steering philosophy
Steering philosophy Connection between MCEV earnings and IFRS result Development of MCEV earnings vs. IFRS result Differences between MCEV and IFRS Illustrative Different reporting standards based on different methodologies Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009
Slide 8: Key figures
Key figures Profitability adequately reflected in embedded value results Embedded value results Embedded value – expected drivers in 2009 2007 2008 (€m) EEV continues to be supported by low-interest environment (reduced effect from discounting) EEV 6,662 6,116 Munich Re Group – Analysts‟ Lunch Semin
Slide 9: Reinsurance solutions
Reinsurance solutions Finding the right access, moving closer to the customer Type of Reinsurance Demand from MR’s competitive Profitability service solutions primary insurer advantage Traditional Providing Need for result Capital strength, Stable and relatively reinsurance reinsurance capacity smoo
Slide 10: Key focus initiatives
Key focus initiatives Building the foundation of our earnings guidance Projected VANB development in accordance with Munich Re Group RoRaC target of 15% €m CAGR >8% >600 CAGR 15% >440 228 Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 2006 2011 2015 Key focus initiative
Slide 11: Regional focus
Regional focus 1 Well-diversified portfolio Distribution of global life reinsurance premiums1 Munich Re life reinsurance portfolio % % 12 Germany Germany 33 17 6 USA Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 45 UK 16 26 UK 10 USA 19 19 Australasia Canada 12 15 Cana
Slide 12: Regional focus: capturing growth potential in global markets
Regional focus 1 Capturing growth potential in global markets Market share of Munich Re in important markets1 % Canada 53 Germany 50 UK 28 Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 Asia 20 Rest of Europe 10 USA 8 Asia: excellent market position in a growth market U
Slide 13: Providing asset-liability solutions
Providing asset-liability solutions 2 Holistic ALM solutions for efficient asset protection Financial guarantees embedded in life insurance offer substantial growth potential Market fundamentals Impact of financial crisis Business proposition of PI is sound Primary insurance Investment-guarantee m
Slide 14: Upgrade service offerings
Upgrade service offerings 3 Generating growth opportunities beside core business Expanding business model and value proposition along the life insurance value chain Product Underwriting, Claims Risk transfer development Processing/Admin management Extensive biometric Advancements in Optimising
Slide 15: Demand for reinsurance solutions
Demand for reinsurance solutions 4 Increase in requests for capital relief deals Strengthening capital base Growth financing Pressure on capitalisation/ PI companies seek to improve solvency levels due to … their market position inducing the … … reduced asset values/ … need for asset impairments cap
Slide 16: Satisfaction of demand
Satisfaction of demand 4 Reinsurance the preferred solution for capital relief Reinsurance solutions provide many advantages Achievements1 Immediate risk/solvency capital relief Number of closed deals: 9 Expected total GPW Capacity with high security of new business >€2bn p.a. Munich Re Group – Anal
Slide 17: Example of block deal
Example of block deal 4 Transaction provides significant surplus relief Simplified structure of a block deal in life reinsurance Reinsurance Sample balance sheet before reinsurance Sample balance sheet after reinsurance contract 1,000 1 -150 Illustrative 3 300 Liab . 600 Munich Re Group – Analysts‟
Slide 18: Summary
Summary Key takeaways Life reinsurance meets its profitable growth targets Munich Re to expand stable traditional business as a capacity and service provider Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 to foster position as holistic risk solution provider Four key fo
Slide 19: Q&A's
Munich Re Group Analysts’ Lunch Seminar on Life Reinsurance Q&A's
Slide 20: Financial calendar
Shareholder information Financial calendar FINANCIAL CALENDAR 4 August 2009 Interim report as at 30 June 2009; half-year press conference 5 November 2009 Interim report as at 30 September 2009 Munich Re Group – Analysts‟ Lunch Seminar on Life Reinsurance – 29 June 2009 20
Slide 21: For information, please contact
Shareholder information For information, please contact MUNICH REINSURANCE Christian Becker-Hussong Thorsten Dzuba Christine Franziszi Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-8030 Tel.: +49 (89) 3891-3875 Tel.: +49 (89) 3891-3910 E-mail: tdzuba@munichre.com E-mail: cfranziszi@
Slide 22: Disclaimer
Shareholder information Disclaimer This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking stateme